Jan 3, 2023
In today's episode of the "Inside the Plan with the 401(k)
Brothers", host Bill Bush and Andy Bush, advisors at Horizon
Financial Group take a look at top financial regrets. There is a
certain saying out there and it goes something like this - NO
REGRETS. Bill and Andy discuss the top 5 regrets often made by
young and old Americans.
- 01:41: As per Bill, for most folks if you reach a certain age,
probably you do have some sort of regret. If you don't, that's
great, but that is very uncommon.
- 03:08: For younger listeners Andy suggests by going through
some sort of education and financial planning you can actually
start to make great decisions and choices that when you look back
when you are 72, then maybe you don't have as many regrets.
- 03:47: Number One Financial regret of older Americans shared by
a thumping 57% of those surveyed was not having saved more for
their retirement during their working years.
- 05:02: It is a good opportunity to point out that most 401K
providers, record keepers, have a pretty robust set of calculators
and tools that participants can log into. So, if you haven't used
those resources, start using it.
- 06:47: The past is the past, you can't go change that, but you
can start to change as you gauge into the future what it's going to
look like, and those tools and those calculators do that. They
don't give you the exactness of it, but they at least give you a
ballpark of what's it going to look like when you are 65 or 70 or
and what kind of income you are going to need based on the
variables at hand today.
- 07:09: Number 2 on the regret list is not saving enough. Not
buying long term care insurance to pay for nursing homes or similar
retirement type of community or something along those lines.
- 08:42: As per Andy number 3 regret on the list is 37% of older
Americans regret not working longer.
- 11:22: Number 4 is remarkably 33% of older Americans regretted
not investing in some sort of guaranteed income.
- 13:11: When planning your retirement ask yourself how are you
going to replace your income? Are you doing something to replace
your income when you are no longer earning it?
- 13:56: Inside of the investment options there, it's happening
more on the bigger mega plans more than it is smaller plans. But
you are starting to see the opportunity for a plan sponsor to put
in some sort of guaranteed income of sliver for an investment
option, says Bill.
- 14:26: Number 5 on the list is about 23% of older Americans
claimed social security too early.
- 16:41: If you file and start taking your benefits before what
is called your FRA, think of that as a penalty or a haircut on what
would have come to you, and if you delay that, you actually get
- 17:53: Healthcare is a big expense the older you get and is
often the biggest expense for folks in their 70s and 80s. And so
that is trying to be as preventative as you can and lead a healthy
lifestyle now before you are retired.
Three Key Points
- Bill and Andy discuss how saving rate matters and how it is in
your control to put away the amount as per your requirement in
- Bill and Andy explain how the cost of insurance of a long-term
care policy is a very small solution to a much bigger problem.
- Before claiming your Social Security, it is important to think
about how long you might live? You need to ask that question rather
than looking at it as if, well, the government's taking my money
all of my working years, and I am going to get it back as soon as I
- "You can learn from the mistakes others have made. I am the
youngest of six and I learned so many mistakes from what my older
brothers did." - Andy
- "We have talked many times about Social Security and what it
will replace in retirement. And for most folks, I think the
best-case scenario might be its 40%, but probably not for most
people. Most people, it's going to be probably 25 or less percent."
- "Raise your contribution rate up 1% each year for you know a
number of years until you get to a good contribution level." -
- "One of the things that are up and coming in the 401K world is
the fact that Recordkeepers will start showing an illustration of
what this pool of money might actually mean on a spread-out basis."